A man in Vilimale’ was arrested for allegedly producing alcohol, reports local media.
The police services have told local media they found 17 barrels contain a substance substance suspected to be alcohol, six empty 5-litre bottles of alcohol, and equipment that could be used to produce alcohol.
Police arrested the 29-year-old Bangladeshi following a special operation and the case is now under investigation.
(0)Dislikes
(0)The opposition Maldivian Democratic Party (MDP) has pledged to develop a mariculture industry in the country should former President Mohamed Nasheed be reelected in September 2013.
Mariculture is a specialised form of aquaculture which involves the cultivation of marine products such as pearls, oysters, fish and sea cucumbers in the open sea, or in nets or ponds exposed to the sea.
During a function launching the party’s policy on Kendhikulhudhoo island in Noonu Atoll on Saturday, the former president suggested that such an industry could generate US$1.05 billion (MVR 16.19 billion) within five years, should the government be able to successfully run at least 60 mariculture projects throughout the country.
“If we can successfully run 60 projects within five years, we will create 1800 new jobs and the country will receive MVR 16 billion in export revenue,” Nasheed said.
Nasheed claimed the party would establish a soft loan scheme worth MVR 200 million to support the people who wished to become involved in the new industry. He said the MDP hoped to establish mariculture as one of the country’s key industries, alongside fishing and tourism.
The Marine Research Center (MRC) established in the Maldives in the 1980’s has extensively researched the country’s reefs and lagoons and identified several ways in which mariculture activities could be carried out, Nasheed noted.
“What we have learned from this research is that mariculture is a very viable industry that could reap a lot of benefit to the country,” he said.
According to the MRC’s website, current aquaculture products farmed in the Maldives include grouper, sea-cucumber and pearls.
The MRC noted that the first pearl culture activity occurred with financial assistance from the United Nations Development Programme (UNDP) in 1996. When the five year project ended, MRC and the UNDP carried out a follow-up five year project from 2003 to 2008.
During a function to launch a sea cucumber development project on the same island in 2011, Nasheed – then President – elaborated that aquaculture and mariculture projects in the Maldives would ensure “the economic growth and economic viability of the society”.
Nasheed, who partook in a sea cucumber hunt during the event, also claimed at the time that it was beneficial for the country utilise the commercial benefits of marine resources in order to “achieve means of income other than revenues gained from the tourism industry”.
Speaking during Saturday’s function, Nasheed highlighted that while successful mariculture projects had been carried out during the three years of his government, a lack of technical expertise in the field was a key challenge for the expansion of such an industry.
A future government led by the MDP would open higher education opportunities in the country in collaboration with the Maldives National University (MNU), he said.
Eco-education
In 2011 during Nasheed’s presidency the MNU began offering courses in environment management – the first higher education program focused on environmental consolidation in the country – with levels varying from bachelors degree, advanced diploma, diploma and degree foundations.
In a bid to encourage people to take up the program, then Ministry of Environment and Energy also opened full scholarship opportunities to those who wished to take up the course.
Nasheed, speaking of the challenges involved in establishing a mariculture industry, said the lack of a hatchery to produce fish-feed was a key challenge.
Others included difficulties with transportation and logistics, which he said could be resolved by enhancing the transportation system established during the last three years of his presidency, would resolve the issue.
“Attention must be given to the environment surrounding us when we carry out any type of business and we should not obstruct the natural life surrounding us while carrying out any business,” he said
Nasheed also promised to establish both quarantine facilities and research facilities that will monitor and evaluate the businesses and would utilise the existing Maldives Food and Drug Authority (MFDA) to ensure the products produced by the industry met the necessary standards.
“Everything we do should be carried out in a sustainable way. MDP will seek to maintain the mariculture industry in a sustainable manner and that businesses involving mariculture will be properly monitored and evaluated,” he said.
Large-scale mariculture not viable; “Fish feed doesn’t grow on trees,” says DRP
Deputy Leader of the government-aligned DRP, Ahmed ‘Mavota’ Shareef, questioned the viability of introducing large-scale mariculture to the Maldives, and slammed the MDP’s economic predictions as inaccurate and an election ploy.
Shareef told Minivan News that when considering the huge investment costs required for mari-culture, funding would be better spent on providing technologies and know how into expanding industrial fishing in the Maldives.
“As opposed to mariculture, which needs large amounts of capital investment, it is much easier to go out and catch fish,” he claimed. “Tuna here is easy and cheap to catch, all people need is a boat. With freshly-caught fish you will get a much higher price than for mariculture.”
As a comparison, Shareef argued that massive amounts of bait and feed would be required to support the MDP’s predictions of a mariculture industry that would generate just over a billion US dollars in revenue over a five year period.
“The availability of fish feed will be a major issue. It does not just grow on trees,” he added.
Shareef also claimed that the mariculture sector was presently dominated by India, China and the US, mainly based around shellfish. However, he argued that mariculture represented just a small proportion of total global fisheries industry.
Shareeef said the DRP would instead favour boosting resources available to the country’s fishermen through supplying bait, satellite communications equipment, longer lines and focusing on forming cooperative fishing companies to boost catches and help establish large-scale industrial fishing.
Responding to Shareef’s remarks, former Press Secretary during Nasheed’s presidency Mohamed Zuhair dismissed claims that the MDP’s predictions were an election ploy, insisting the party had extensively studied the subject.
“The DRP is entitled to their own views. But I don’t believe they have studied the matter that is being discussed. Our predictions are based on extensive research study. The Maldives has previously tested and tried mariculture and the results are promising,” he said.
Zuhair also claimed the MRC had promoted many opportunities in the field of mariculture during former President Maumoon Abdul Gayoom’s government, but these had not progressed because of a lack of incentives from the central government.
“Each of our islands has direct access to the sea and can easily engage with mariculture. This is not something new to the Maldives; it is tried and tested,” Zuhair said.
(0)Dislikes(0)Indira Gandhi Memorial Hospital (IGMH) may reduce the number of workers employed at the site following a health institution structural review, local media has reported.
During former President Mohamed Nasheed’s administration, IGMH employees were transferred under the Health Corporation.
However, under the current administration of President Dr Mohamed Waheed, Health Minister Dr Ahmed Jamsheed then transferred all Health Corporation employees to government civil service November 1, 2012.
An IGMH official told local media that the hospital is “largely under the civil service structure” and the regular payment of salaries and allowances has been changed “according to service regulations,” however further changes are still needed.
“The change in structure was brought about after a delay of more than six months,” the official said.
Changes in the hospital’s structure and a “shuffle” of management are expected following the review, since civil service posts have duplicated some Health Corporation positions and so far the review shows the number of employees is “a little bit high”.
(0)Dislikes(0)President Dr Mohamed Waheed has been invited to attend the 4th International Islamic Conference of Bait Al Maqdis in Palestine as guest of honour, the President’s Office has confirmed.
President Waheed has been invited to the conference, which is scheduled to take place in early June, by his Palestinian counterpart Mahmoud Abbas on the back of ongoing efforts to expand bilateral relations with the Maldives.
The President’s Office said that Dr Waheed’s invitation was personally delivered yesterday (April 21) by the Ambassador of Palestine accredited to the Maldives, Dr Anwar Al-Agha.
After handing over the invitation, the ambassador also praised president Waheed’s work to uphold Islamic culture in the Maldives, while also commending his efforts to strengthen bonds with Arab countries.
(0)Dislikes(0)The Ministry of Tourism, Arts and Culture has claimed the Maldives’ selection as host for the Indian Ocean World Travel Awards (WTA) ceremony next month is a “milestone” in the 40 year history of the nation’s holiday industry.
Deputy Tourism Minister Mohamed Maleeh Jamal said the ceremony, which will take place at the Paradise Island Resort and Spa in North Male’ Atoll on May 12, paves the way for further high-profile events to be held in the Maldives in future.
Maleeh told Minivan News that hosting the WTA, described by the Maldives Marketing and PR Corporation (MMPRC) as the “Oscars” of the global tourism industry, would open up a wealth of opportunities for event hosting at resorts and other facilities in the country.
MICE tourism
He added that the ceremony would send a message to the world that the country was able to provide meetings, incentives, conferencing and exhibitions (MICE) tourism in a luxury and private setting that was unique from other destinations.
“Over the past 40 years, we have been known as a honeymooners spot, a surf spot and a luxury holiday destination. This will add another area for the industry,” the deputy tourism minister said.
Maleeh said that with the MICE tourism segment last year valued as a trillion US Dollar business segment, securing even a small proportion of the market would be a welcome boost to the country’s tourism industry.
Arrivals to the country were found to have posted double-digit growth during the first quarter of 2013 over the same period last year.
The results were a notable improvement on arrivals recorded during the first three months of 2012, which were negatively impacted by global headlines focused on political turmoil following the controversial transfer of power that brought the current government to office in February the same year.
Considering the number of resorts with conference facilities already operating in the Maldives, Maleeh praised the potential for MICE tourism in the Maldives, despite adding that the industry was very much at a “starting point” in the country.
However, in addressing challenges such as logistics that have previously limited event hosting to areas surrounding Male’, Maleeh claimed that the emergence of a number of regional airports around the country would open up a wider number of properties and businesses to potentially benefit.
“Event-based tourism will also see growing amounts of business for local companies as well, such as for lighting specialists and performers,” he added.
Beyond next month’s ceremony, Maleeh said that senior representatives from the World Tourism Organisation (UNWTO) were also scheduled to travel to the Maldives in September for a special panel discussion. The event was similarly anticipated to boost the country’s reputation for event hosting, according to the tourism ministry.
Eventful past
Outside of the Maldives resort industry, some local promotion groups have previously complained that challenges still remain in trying to bring high-profile events and entertainment to the wider country.
Back in November, 2012, a concert by Chris de Burgh – the singer/songwriter famed for the 1980′s global super-hit ‘Lady in Red’ – attracted 1500 people to Galolhu National Stadium in Male’.
Organisers claimed at the time the event was one of the largest shows of its kind held in the Maldives over the last decade, especially considering ongoing difficulties in securing international artists to play in the archipelago nation.
The team behind the event claimed the concert was therefore an important step towards paving the way for world famous artists to perform in the country.
Mohamed Shinan, event coordinator with local promotion company Think Advertising, said the Maldives has traditionally struggled to cover the fees of high-profile performers when trying to bring concerts to the Maldives.
However, Shinan said that organisers had been happy with the eventual turnout for the concert.
“Including the sizable audience in the standing section, we estimate some 1,500 people were in attendance, which is not bad for an artist like Chris de Burgh. Most young people only know him for the one song.”
Two months earlier, the organisers of the 2012 Hotel Asia Exhibition and International Culinary Challenge held at Male’s Dharubaaruge conference centre claimed they were at maximum capacity in terms of the number of regional and international exhibitors in attendance.
Husnie Rauf, Senior Manager of Maldives Exhibition and Conference Services (MECS), said the company had been “surprised” by the interest shown from exhibitors taking part in the annual show, which attempts to link the country’s secluded resort industry and local hotel trade with “world class” suppliers.
Over the last three years, the Maldives has played host to several high-profile regional and international events including the 17th SAARC Summit in Addu City, and the Hay Festival Maldives, held at the presidential retreat of Aarah back in October 2010.
(0)Dislikes(0)Minister of Defence and National Security Colonel (Rtd) Mohamed Nazim said that he would “not allow room for politics within the military”, according to local media.
The comments were made today as part of a speech given at a flag hoisting ceremony to mark the 121st anniversary of the Maldives National Defense Force (MNDF).
MNDF soldiers must forgo rights granted to civilians, refrain from politics, and limit their political participation to voting only, as stipulated in the Constitution and military law, Nazim was quoted as saying by Sun Online .
“Every soldier has to accept that some of the rights granted to a civilian in an open society are restricted to a soldier. One of these rights is the right to participate in political activities. I would like to tell you that the constitution and the military law have curbed these rights from the soldier for a greater and larger purpose,” Nazim stated, according to local media.
“I would like to tell you today, that the role of a soldier is done once you exercise your right to cast your vote, entitled to every person above the age of 18. I would like to bid from all military personnel to refrain from partaking in political activities,” Nazim added.
Nazim also “assured” soldiers he will not issue political orders as long as he remains Minister of Defence.
Article 30(a) of the Maldivian constitution stipulates that “Every citizen has the right to establish and to participate in the activities of political parties.”
(0)Dislikes(0)Divisions have arisen between different ministerial bodies and the private sector over who should take the majority of blame for garbage being dumped into the sea.
While the Environment Ministry this month raised fears about increased levels of garbage in the sea as a result of resort waste not being properly disposed of, the Tourism Ministry responded that the more likely culprits were boat operators.
Meanwhile, the country’s safari boat industry has rejected allegations that a large number of liveaboard operators were responsible for dumping trash into the country’s waters, claiming the main problem lay with boats hired by resorts to transport waste to landfill.
Mounting complaints
Minister of Environment and Energy Dr Mariyam Shakeela told local media earlier this month that the majority of waste being produced by resorts was not reaching land set aside for disposal on the island of Thilafushi. She claimed it was instead being dumped in the sea.
Dr Shakeela stated that complaints about resorts dumping their trash were mounting and that “close inspection of waste accumulating in the sea near the capital Male’ has proved that it had been dumped by resorts”.
“The reason I say this is because most of the photos sent in by EPA [Environmental Protection Agency] and other such authorities show large quantities of orange peel. Bits of apples and tomatoes amount to most of the waste. Where does it come from? It comes from the resorts,” Shakeela said.
She added the amount of waste produced by resorts amounted to 7.5 kg per head.
Environmental authorities have nonetheless pledged to “try to establish a focal point on each resort” and conduct a waste study.
Responding to Dr Shakeela’s comments, Tourism Minister Ahmed Adheeb told Minivan News this month that resorts had their own waste management facilities, adding that dhonis (boats) were more likely to be behind dumping the garbage. He mantained that the matter was presently under investigation.
Addressing concerns about the levels of trash found in the sea, Adheeb also highlighted the lack of a nationwide waste management system.
He said that while the previous government of former President Mohamed Nasheed had proposed generating energy from incinerators – referring to ongoing uncertainty over a previous waste management project – it first needed to have incinerators in place and working.
The Ministry of Tourism, Arts and Culture has previously pledged to take the “lead” in addressing waste management issues in Male’ should the city’s council and the Ministry of Environment and Energy fail to effectively deal with concerns about garbage.
In early January, Adheeb said the issue of waste management posed an immense threat to tourism in the country. He added at the time that his department would “take the lead” to actively address the problem should other authorities fail to resolve ongoing concerns by February 2013.
However, opinion about levels of trash being dumped in the sea appears further divided among boat operators in the country – particularly within the safari boat industry, which provides trips and cruises for both tourists and Maldivians.
Safari boat waste dumping
A source with over 16 years experience in the safari boat industry has alleged that approximately 75 percent of safari (liveaboard) boats were responsible for prolific waste dumping.
“Every night when all the guests go to sleep around 12:00am to 1:00am, the liveaboard staff throws everything into the sea. This includes basically everything, all the trashcans [bags], plastic bottles, foods, lube oil, for example,” the source said.
The source further explained that the practice of dumping waste depended often on the company operating the boat, their hiring practices, and staff regulations. He alleged that the worst practices were often committed “by the ones in charge of the Liveaboard Association”.
“When you have a proper establishment they won’t let staff do that. Very good local and foreign companies strictly forbid staff to throw even cigarette butts into the ocean,” the source said.
“However, there are no regulations or requirements to work on a liveaboard and it’s all about [securing] cheap labour. This is a very big issue in the dive industry. They do not go for the qualified people,” he added.
The source claimed that with the number of foreign workers on liveaboards increasing, their work status was often illegal – making them unaware and sometimes careless regarding issues concerning waste dumping.
“It’s all about awareness and getting the right people to do the right job. At least to keep a responsible person on each liveaboard to make sure no one is illegally dumping garbage,” the source declared.
He further explained that dumping waste into the ocean was very harmful to the local ecosystem.
“The big, huge, messy black garbage bags can drift with the current and then trap healthy table coral. Harm also comes to mantas and whale sharks which stay near the surface, while sea turtles ingest plastic bags mistaking them for jellyfish,” the source said.
“If things continue like this we won’t have any healthy reefs in the next 10 to 15 years. The Maldives won’t be the same,” he claimed.
The source believed that the government in recent years – both the current and former administrations – has not taken any proper actions to try to combat the problem.
“The tourism ministry doesn’t do anything aside from talking. Actions speak louder than words and there has been no enforcement of the laws.”
In regard to the allegations of safari boats dumping waste, Tourism Minister Adheeb told Minivan News that a proper place was needed for the liveaboards to moor so the vessels can be monitored.
Liveaboard Association response
Meanwhile, the Liveaboard Association of Maldives (LAM) Secretary General Ismail Hameed told Minivan News that the allegations of safari boat waste dumping applied only to a limited number of operators. Hameed claimed that some companies would always try to flout the rules.
“Many liveaboards are following regulations [and not dumping waste into the sea], but there will be some vessels that do,” he said.
Hameed alleged that dhonis carrying resort waste are responsible for illegal waste dumping.
“Resorts send their garbage to Thilafushi on dhonis. The dhonis cut the trip short and dump the waste in the ocean. I’ve seen boxes labeled with resort names,” explained Hameed.
“Not all resorts are guilty of improperly dumping waste, just as not all liveaboards are guilty either,” he added.
Hameed additionally complained that the liveaboard industry has been neglected for 40 years “under every government administration”, further complicating efforts to monitor operators.
“Our main concern is there are no proper mooring and harbour system for liveaboards. There needs to be a local marina patrolled to ensure safety, proper garbage disposal, and refueling for these vessels,” he said.
“There has not been a proper mechanism for waste management implemented by the [national] government or island societies.”
Hameed claimed that the LAM has been communicating these issues to the government for “a couple of years”, explaining that the cabinet had recently approved work on a harbour for safari vessels in the Male’ area.
LAM aims to “find solutions to difficulties, issues and other things involved in liveaboard operations, including environmental issues and staff development”,
(2)Dislikes(1)A Maldivian NGO has criticised child protection measures currently in place in the country as “inadequate”, while urging government authorities to incorporate several key human rights obligations into domestic law.
Local NGO Advocating the Rights of Children (ARC) told Minivan News today (April 21) that although the Maldives has signed and agreed to be legally bound by the provisions in the Convention on the Rights of the Child (CRC) and its Optional Protocols, the commitments have yet to be adopted into law.
ARC said it therefore “strongly urged” the Maldivian government to ratify the CRC Optional Protocol on a Communications Procedure as soon as possible to “enhance child protection measures in the country and to uphold its international legal obligations and responsibilities under the convention.”
ARC today claimed that provisions outlined in the CRC had not been fully adopted by the state into domestic legislation, thereby limiting the promotion and protection of child rights.
“Even though there is work being done to protect children, it is not enough,” the organisation said.
“The CRC’s optional [communications] protocol allows individuals, a group of individuals or their representatives to submit complaints to the UN Committee on the Rights of the Child claiming to be victims of a violation by the state, of any rights enshrined in the convention or any of its optional protocols which the Maldives is a party to.
“What is very important is that children themselves or their parents can submit complaints if domestic [legal measures] have been exhausted,” ARC added.
ARC cited the recent example of the 15-year-old rape victim from the island of Feydhoo in Shaviyani Atoll who was convicted of premarital sex at the Juvenile Court in February and sentenced to 100 lashes and eight months of house arrest.
“The recent case of a 15-year old girl, whose rights were violated and abused by her step-father is a clear example of how domestic judicial and legal mechanisms failed to address and rectify the violation over a substantial period of time, at different levels,” ARC said.
“This is a situation where an individual complaint to the UN Committee could hold the government accountable even if the ‘domestic remedial system’, including judicial and legal mechanisms, fail to address the issue of abuse.
“Ratifying this optional protocol will help protect the rights of children as it could help reduce the number of cases in the Maldives where a lack of legislation, clarity and commitment to international human rights law allow serious injustices to proliferate,” ARC added.
Council heads and senior civil society figures have previously slammed the judiciary, state authorities and welfare groups over their systemic failure to protect the 15 year-old girl, despite her history of alleged sexual abuse dating back to 2009.
The 15-year-old’s case has brought international attention to the Maldives’ legal system, including the launch of an online Avaaz.org petition signed by over 2 million people that has threatened to boycott Maldivian tourism. The sentencing of the minor has also come under high-profile public criticism from British multi-billionaire Sir Richard Branson, founder of the Virgin group of companies.
Former Attorney General Azima Shukoor has already appealed the court’s sentencing decision against the minor.
ARC said it hope ratifying the treaty in the Maldives would instill “a sense of transparency on child rights issues and encourage the government to be more accountable to its obligations.”
“The protocol is specifically designed to allow members of the public to submit complaints to an international body if children’s rights have been violated,” ARC added.
ARC said it had been informed by the Maldivian government that the ratification process had been started and was hoped to be concluded “at the earliest opportunity”.
UNICEF’s view
The UN General Assembly adopted the CRC’s optional communications protocol (treaty) in December 2011. Tt was first opened for signature in February 2012. Currently only four countries have ratified the treaty, agreeing to be legally bound by its terms.
UNICEF Representative Zeba Tanvir Bukhari explained to Minivan News that the CRC’s optional communications protocol would require a minimum of 10 ratifications before the treaty enters into force.
“Signatures usually happen faster than ratification, however what is signed should be ratified to help enable implementation,” said Bukhari.
She added that achieving societal change in attitudes to child rights was difficult, but there were “many ways of managing” it in the Maldives. Bukhari pointed to maintaining civil society pressure and media attention on the Maldivian government to ratify the CRC optional protocol, as two notable examples on how to secure such changes.
UNICEF previousy backed a study published by the Human Rights Commission of the Maldives (HRCM) in January of this year highlighting numerous policy deficiencies in children’s participation and protection. These deficiencies were highlighted in the report as potentially putting Maldivian children at serious risk of harm.
Ultimately the report recommended that government and civil society organisations “push for a radical change in the traditional thinking which dominates Maldivian perceptions of children: children should be seen and not heard.”
The Maldives has ratified the Convention on the Rights of the Child (February 1991), the Optional Protocol on the Sale of Children, Child Prostitution and Child Pornography (May 2002), and the Optional Protocol on the involvement of children in armed conflict (December 2004).
Legal obligations
A senior legal expert with experience of working under both the present and former governments spoke
with Minivan News earlier this year about how minors were identified and viewed in the eyes of Maldivian law.
The legal source stated that the culpability of children was identified in a regulation called ‘Kuda kudhin kuraa kushuge masala thah balai, thahugeegu koh, insaafu koh, adhabu dhinumugai amalu kuraane gothuge gavaidu’.
The legal source said that the culpability of minors is specifically dealt with in section five of the regulations.
“According to section five, children above the age of 10 and below the age of 15 are criminally responsible for five offences, which are apostasy, treason, fornication, falsely accusing fornication and consumption of alcohol,” the source said.
“Children above 15 years are criminally responsible for their actions. With children who are below 10, parents are required to make good any damage because of a criminal act. There is no criminal liability for below 10.”
Meanwhile, neglect and abuse of children were reported to have increased to an “alarming level“, compelling the the Maldives’ Ministry of Gender, Family and Human Rights to submit an amendment (April 7) that would transfer parental guardianship of children in cases of negligence.
Earlier this year, ARC called on the Maldivian government to pass legislation concerning the treatment of sexual abuse victims. The NGO also raised concerns over the potential impact on the state’s ability to prevent sexual offences following reductions to the state budget approved by parliament in December 2012.
ARC has identified a lack of specific legislation protecting rights for children and adults – despite the Special Measures Act 2009.
The NGO also previously called for reforms of the juvenile justice system and reform of the current protection mechanisms provided to minors who are kept in state run institutions, such as homes and foster programs.
(0)Dislikes(1)The government has decided to delay implementation of new development projects financed out of the state budget due to shortfalls in revenue, Finance Minister Abdulla Jihad confirmed to Minivan News today.
Jihad said that the cabinet decided to postpone planned infrastructure projects that have not yet started in an attempt to ease cash flows rather than deducting a specific amount from the development budget.
“We are in the process of [drawing up a supplementary budget]. Hopefully by the end of the month we will have something,” he said.
The decision to suspend new projects was revealed by Housing Minister Dr Mohamed Muiz today following the signing of contracts to build harbours in four islands.
Speaking to press after the signing ceremony, Muiz said he was instructed by the finance ministry not to commence any further infrastructure projects included in the 2013 budget, such as harbour construction or land reclamation.
Muiz explained that government-funded projects in the pipeline will be pushed back until parliament passes bills to raise additional revenue.
The move follows parliament’s rejection last week of government-sponsored legislation to raise the airport service charge to US$30, which was among a raft of measures proposed by the Finance Ministry in the estimated 2013 budget to raise MVR 1.8 billion (US$116 million) in new income.
Other measures included hiking Tourism Goods and Services Tax (T-GST) to 15 percent from July 2013 onward, leasing 14 islands for resort development, introducing GST for telecom services as well as oil, and “selectively” reversing import duty reductions.
Following the narrow defeat of the airport service charge amendment bill in parliament, Jihad told local media that a “significant amount” would be lost from projected revenue as the additional income was anticipated in budget forecasts.
“If the amendments for the import duty are not passed, we will find it extremely difficult to manage the budgets of institutions. So it’s critical that the parliament expedites work on the bills and support them,” he was quoted as saying by newspaper Haveeru.
The bill proposed by the government to raise the airport service charge was defeated 28-27 despite the ruling coalition’s provisional majority in the 77-member house.
During the parliamentary debate last week, MPs of both the opposition Maldivian Democratic Party (MDP) and government-aligned Progressive Party of Maldives (PPM) – respectively majority and minority parties in parliament – accused President Dr Mohamed Waheed of using state funds to finance his presidential campaign.
Supplementary budget
Dr Waheed meanwhile told the people of Thulusdhoo in Kaafu Atoll yesterday (April 20) that there was no cause to worry about the budget or rumours of impending bankruptcy.
“The Maldivian economy is not really that bad,” he was quoted as saying by Haveeru.
President Waheed however conceded that “difficulties” had arisen due to spending beyond the country’s means in the recent past.
As a consequence of deficit spending financed by loans, Dr Waheed said the government had to spend an amount almost equal to the state’s wage bill on interest and loan repayments.
“We Maldivians are not indebted to anyone. We are proud people. We pay back what we borrow. We don’t have any outstanding payment, to any party,” Dr Waheed said in his speech, according to the President’s Office website.
He added that the finance ministry was preparing to submit a supplementary budget to parliament before the end of April, which would seek funds needed to provide services to the public without interruption.
Economic Development Minister Ahmed Mohamed – a senior member of the government-aligned Dhivehi Rayyithunge Party (DRP) – however told Haveeru last week that a supplementary budget would be of no use if parliament failed to approve the proposed revenue raising measures.
“Numbers written on paper will not increase funds. One or two billion rufiya can be added to the budget through the supplementary budget,” he explained. “But shouldn’t there be a way to get that three or four billion rufiya?”
The minister also referred to media reports suggesting that some government offices have exhausted their annual budgets after the first three months of the year.
Parliamentary approval
During the budget debate in December 2012, Majority Leader MP Ibrahim Mohamed Solih warned that the additional revenue projected in the budget was unlikely to materialise.
The MDP parliamentary group leader claimed that the import duty revision to raise tariffs on oil “will not be passed in this Majlis.”
Moreover, he said at the time, the MDP would not support increasing T-GST without consultation with the tourism industry.
Predicting that revenue in 2013 would reach “only MVR 11 billion at most,” Ibu warned that income would not be enough to meet recurrent expenditures on salaries and administrative costs.
Meanwhile, Minority Leader MP Abdulla Yameen, parliamentary group leader of the PPM, said at the time that the government’s objectives or policies could not be discerned from the proposed budget.
“These projects are very random or ad hoc. The government’s planning should be better than this,” he said.
While President Waheed had taken note of the high salaries paid by institutions such as the People’s Majlis as “a serious problem,” Yameen said he could not see “any kind of sign” of reducing recurrent expenditure or salaries and allowances for government employees.
The state’s wage bill amounts to 48 percent of recurrent expenditure, which accounts for 70 percent of government spending.
2013 budget
A public sector investment program (PSIP) of MVR 3.1 billion (US$201 million) was proposed within the 2013 budget.
This included MVR 1.5 billion (US$97 million) from the state budget, MVR 21 million (US$1.3 million) from domestic loans, MVR 1.2 billion (US$77 million) as foreign loans and MVR347.6 million (US$22.5 million) as free aid.
After parliament trimmed more than MVR 1 billion (US$64.8 million) from the MVR 16.9 billion (US$1 billion) budget submitted by the Finance Ministry, Jihad warned that funds allocated in the budget would not be enough to manage expenses and predicted that a supplementary budget would be needed before the end of the year.
Parliament’s Budget Review Committee approved MVR 1.6 billion (US$103.7 million) in cuts from recurrent expenditure and added MVR 389 million (US$25.2 million) for infrastructure projects.
The budget items that the committee reduced included; overtime pay (cut 50 percent), travel expenses (cut 50 percent), purchases for office use (cut 30 percent), office expenditure (cut 35 percent), purchases for service provision (cut 30 percent), training costs (cut 30 percent), construction, maintenance and repair work (cut 50 percent) and purchase of assets (cut 35 percent).
The committee also instructed the Finance Ministry to reduce an additional MVR 605.7 million (US$39.2 million) from office budgets.
In December 2012, the Finance Ministry ordered offices to cancel all overseas trips, such as for study tours and training, and to seek approval from the ministry for all official trips that were not completely funded by foreign parties; cancel all repair work for the rest of December; and cancel purchases of capital items that were not included in the public sector investment programme (PSIP).
In the circular, the Finance Ministry noted that 15 percent had previously been deducted from office budgets to reduce the fiscal deficit “as a result of income being lower than estimated in the 2012 budget passed by parliament.”
However, since government spending necessary to provide essential services to the public could not be reduced, “the state’s expenditure has to be further controlled as additional measures are needed to reduce the state’s budget deficit,” the circular stated.
In July 2012, the Finance Ministry instructed all government offices to reduce their budgets by 15 percent, with only 14 of 35 offices complying by the given deadline.
“Some offices will face difficulties. But we don’t have a choice,” Jihad told local media at the time.
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